I'm moving this discussion in user instead of dev.
You hosts file should not looks like what you have:
127.0.0.1 localhost.localdomain.com localhost
127.0.0.1 database.companyname.com database
You should but your IP address at the 2nd line instead of 127.0.0.1
Can you please with this modification?
2014-01-31 jeevi tesh <[EMAIL PROTECTED]>: